Wendy's earnings update

Wendy's reports a quarterly earnings beat but trims its 2025 outlook, signaling a tougher path ahead.

Wendy's Stock Rises After 2025 Guidance Cut

Wendy's posted a second quarter that showed an earnings beat but a weaker 2025 forecast. The company reported adjusted earnings per share of 29 cents on revenue of 560.9 million, topping Wall Street expectations on the bottom line but missing on revenue. It also cut its 2025 guidance, now expecting global systemwide sales to decline 3% to 5% year over year, versus a prior view of flat to down 2%. In addition, adjusted EPS guidance was reduced to 82 to 89 cents from 92 to 98 cents. Despite the softer outlook, the stock rose 1.91% on Friday, though it remains down sharply for the year and over the last 12 months.

Analysts on average rate Wendy's stock as a Hold, with a price target around 12.63 dollars, implying potential upside if sentiment shifts. Before the report, Wall Street had modeled about 94 cents in 2025 earnings, highlighting a disconnect between the quarterly beat and the longer-term guidance. The shares’ broader decline this year has been driven by inflation, higher costs and softer guest traffic in the sector.

The market rewarded the quarterly beat while pushing back on the longer horizon. Wendy's shows operational strength in a single quarter, but the new forecast paints a tougher growth path that could test investor patience. Stakeholders will be watching how the company wins back traffic and improves margins as costs stay elevated. The broader fast-food landscape remains exposed to inflation and wage pressures, so any recovery will depend on price strategy, menu optimization and productivity gains.

Looking ahead, Wendy's needs a clearer plan to convert momentum into durable profits. A successful turn will likely hinge on improving unit economics, accelerating value-driven promotions without eroding margins, and expanding in high-potential markets. If those levers land, the stock could regain credibility; if not, the weaker guidance could fuel further volatility as investors reassess the pace of any rebound.

Highlights

Momentum may lag until the company proves it can translate quarterly strength into a sustainable upgrade cycle.